Finances: What you should do this week

In my blog from last week, how to retire in 5 easy steps, I discussed the 5 steps you need to perform in order to set yourself up for early retirement. This week I'll discuss some things to try to get a handle on your finances. These are four things that you can do this week to get them under control.

Things to do this week
1. Refinance your mortgage
2. Consider getting an account at a credit union
3. Call your credit card company
4. Open an IRA account


1. Refinance your mortgage
If you own a house and have either a variable rate mortgage or a fixed mortgage of over 5.25%, call your lenders about refinancing to a fixed rate mortgage.

Rates for a 30-year fixed mortgage are running about 4.6% right now. The interest rates for mortgages are the lowest since national statistics have been collected (over 30 years)!

In my own research, I found that my credit union offered me the lowest rates by about 0.25%!

Check out this link to see what the mortgage rates are today.

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2. Consider getting an account at a credit union
My credit union provides me with the best offers for checking, savings, and loan accounts. In nearly every comparison I've made over the last year my credit union beat the banks handily and for my mortgage, they beat the bank's rate by a quarter point!

Here's a link to find a credit union near you.

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3. Call your credit card company
Pull out your credit card and call the number on the back.

If you have a credit card and are carrying a balance from month to month, ask for a lower rate. The worst they can say is, "no" and that leaves you exactly as you already are. However, if you have made all your payments for the last 6-12 months, they are likely to say, "yes" and that means you have just save yourself money!

If you have a credit card and do not carry a balance, then ask for something else. Some options you may want to consider are:
a. cash back bonuses
b. special offers
c. the cancellation of annual fees
d. lower interest rates

Yup, even if you are not carrying a balance now, the lower interest rates may help you in the future.

While you're on the phone, ask what your balance and interest rates are.

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4. Open an IRA account
Call or browse your bank's, credit union's, or investment house's (I like Vanguard) and ask how you can start an IRA account. Most people are permitted to deposit up to $2000 per year into this account. If you are able to contribute this much, it'll save you some taxes.

But I must warn you that if you get an employer match you should not reduce your 401K contributions to fund your IRA.

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Proceed to my next finances blog how to save money.


Return to my previous finances blog how to retire in 5 easy steps.